We are ready for some downward pressure as our trading profits have not been able to keep up with the dividends. It’s important to have cash available in your broker account to be able to take advantage of the pullbacks and scans that allow you to better position your capital. All too often folks want to try and pick tops and bottoms only to miss out time and time again. Once you leave the appearance of the charts behind you are well on your way to consistently profiting from the market. Whatever strategy you decide on, stick with it and be patient.
We were able to take some risk off the table this last month due to the stagnant movement or topping out if you like. Don’t be fooled by the indexes, they too are illusions. If you were to follow one or even trade it would be the Russell or S&P’s. We trade the indexes that pay dividends, although they tend to be in the larger accounts due to the size of the Max shares being so low.
Once you compartmentalize each stock and CEF and treat it as its own risk, then managing a larger account does not become risk-averse.
Keep trading within the structure and good luck for the coming month, although we don’t need any luck, just rules…